New York AG Cuomo Wrings It Out of AIG

Andrew Cuomo is working hard these days to be governor of New York, a la Eliot Spitzer. If you’rie not a populist Dem these days, pray that you act like one for your own survival.   Pay keen attention,  take notes and start talking the walk…

According to HuffPo, Cuomo’s office provided plenty of grist and speculation as it kneecapped Edward Liddy and AIG’s excuses (echoed by Bernanke, Geithner and Summers) that AIG had to come up with the money:

• The top recipient received more than $6.4 million;
• The top seven bonus recipients received more than $4 million each;
• The top ten bonus recipients received a combined $42 million;
• 22 individuals received bonuses of $2 million or more, and combined they received more than $72 million;
• 73 individuals received bonuses of $1 million or more; and
Eleven of the individuals who received “retention” bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million;

Again, these payments were all made to individuals in the subsidiary whose performance led to crushing losses and the near failure of AIG. Thus, last week, AIG made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing taxpayer bailout.   Something is deeply wrong with this outcome. I hope the Committee will address it head on.

We have also now obtained the contracts under which AIG decided to make these payments. The contracts shockingly contain a provision that required most individuals’ bonuses to be 100% of their 2007 bonuses.  Thus, in the Spring of last year, AIG chose to lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008 performance would be disastrous in comparison to the year before. My Office has thus begun to closely examine the circumstances under which the plan was created.

In other words, AIG knew that they would have to petition Bush or his successor. They knew that the ship was rotting and the rudder had been eaten away.   The circumstances under which the plan was formulated was basically to provide cover and hush money.  AIG is an international insurance company, I keep hearing over and over again.  Some have hinted darkly on Leftblogistan that the intelligence agencies may be wrapped up in this mess.  If  I begin to hear any words like or euphemisms for  ‘national security’,’ then I’ll hve a good idea about the reasons why.  But the other shoe has yet to fall.

Once the names of these Massas of the Universe are exposed, even if it is just those 73 winners, there will be hell to pay for them to upchuck every penny. I’m not talking about the foreign employees, but the American ones. Don’t even think Cuomo won’t do it, citing “safety issues.”   Madoff is sill standing.  This is something millions of Americans have been wanting to know. Exposure  will put the fear into these greedheads that somewhere out there in the American hinterland, someone is prepping a baseball bat for one of them, if not a few bullets.    Class warfare, you say?   Possibly.   But at this moment, the AIG bonus recipients don’t have enough dollars to buy a clue.

~ by blksista on March 17, 2009.

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